Litecoin is an alternative cryptocurrency that’s made to that’s based on Bitcoin’s model. Since it’s decentralized, Litecoin is not controlled by banks or any central authority. This makes it easier to trade internationally and receive it faster than fiat currency. The coin was developed to be the “silver” in comparison to Bitcoin’s “gold”. It’s gained a lot of popularity since its development. Also, Litecoin was developed to improve on Bitcoin’s flaws (slow transaction speed, blockchain issues, etc).
Continue reading to get an in-depth analysis on Litecoin’s history and how it became the popular coin that people know today.
Advantages and Disadvantages
Before we go further, here are a few pros and cons associated with Litecoin:
• Less volatile during market drops and crashes
• 84 Million Total Supply
• Supportive Community
• Faster network Than Bitcoin resulting into faster transactions
• Supports all hardware wallets
• Less market capital than Bitcoin
• Not recognized as much as BTC/ETH
Transaction Processing Speed
With Litecoin, you don’t have to wait as long as you would with Bitcoin to complete a transaction. On average, you’ll spend at least 2.5 minutes to complete a transaction. Bitcoin, takes 9 minutes per transaction, making it harder to use when more users are on its blockhain.
For example, a merchant would have to wait at least 4 times more if they want to sell their services on Bitcoin. Using Litecoin, they can accept transactions without waiting at all. Because of this, its used for merchants who sell international products and want to receive the most profits.
Think about your current portfolio, when you first invest in Bitcoin, you’ll be exposed to multiple market corrections. When having some Litecoin, you’ll have a more diverse portfolio that won’t be subjected to failure once a crash occurs.
Scrypt Based Mining
Unlike Bitcoin, Litecoin’s currency is backed by a Scrypt based mining platform. Bitcoin uses a Application-Specific Integrated Circuits (ASICs) type of mining where complex hardware and a computer with a good GPU or CPU is needed.
With Scrypt mining, users can quickly mine Litecoin without much difficulty. While companies have developed an ASIC based program for Scrypt, you can still mine Litecoin at a faster rate than you would with Bitcoin or other SHA-256 based cryptocurrencies.
History Summary of Litecoin
Litecoin started as a peer to peer based cryptocurrency in 2011. It was founded by Charlie Lee, who was a former Google employee at the time. Litecoin is a hardfork on Bitcoin’s previous blockchain as it has a higher maximum coin supply, modifided GUI, and a faster block generation time (2.5 minutes).
As of now, Litecoin has a current market capital of $16 million dollars. The cryptocurrency has increased in value since its development by up to $305 a share. Litecoin is ranked #5 within the cryptocurrency market.
We suggest that you look into Litecoin if you want a modest cryptocurrency who has good growth potential and the ability to stay stable. While it’s hard to predict the market, rest assured that Litecoin is here to stay.
Where Can I Obtain Litecoin?
You’ll find it easy to obtain Litecoin as it can be either traded via exchanges or collected via mining. Plus 500 is a reputable online broker that allows users to buy and sell Litecoin as if it was a regular stock option.
We have a tutorial to help new users obtain Litecoin, but that will be explained further in another article. Give it a look if you want a good alternative to Bitcoin and a better opportunity to obtain gains within the future.
What’s the future for Litecoin? We expect that it will still remain stable despite the hectic highs and lows within the crypto market. Thus, if you do plan on investing in this coin, take some time learning the proper investing techniques so that you are well informed and make the right decision.
Stay tuned for our next part in out Litecoin Series. We want to help you understand Litecoin fully so that you can make the right decisions and potentially make some earnings with this innovative addition to the cryptocurrency market.
Do you have any questions or concerns in regards to Litecoin?
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